In a move that takes direct aim at unpredictable gasoline prices, Governor Gavin Newsom has inked a new piece of legislation designed to clamp down on the root causes of gas price hikes that have plagued Californians, particularly during moments when refineries switch off for maintenance without any backup plan, as reported by the Governor's office. The bill — ABX2-1 — penned by Assemblymembers Gregg Hart and Cecilia Aguiar-Curry along with Senator Nancy Skinner, stands as the state's effort to compel oil refiners to maintain a minimum inventory of fuel to curb the supply shortages, which typically trigger price surges at the pump, a capricious dance that last year alone cost Californians over $2 billion.
"Price spikes at the pump are profit spikes for oil companies, and they’re overwhelmingly caused by refiners not backfilling supplies when they go down for maintenance," stated the announcement from the Governor’s office, which outlines the intention of the legislation to provide Californians with the much-needed financial relief, particularly after the tumultuous gas price spikes in 2022 supported by a special session called by Governor Newsom to undertake this financial battle.
Supporters of the legislation span a broad coalition, including mayors, labor unions, environmental advocates, and economists, who see the measure as an economically sane response to a particularly predatory market phenomenon. A Stanford economist applauded the initiative, noting it as "an economically sound policy that addresses an important problem in a well-targeted way." Governor Newsom, too, is acclaiming the moment, "We’re not waiting around for the industry to do the right thing — we’re taking action to prevent these price spikes and save consumers money at the pump," as detailed by the Governor’s office.
